How important is location when applying for the top 14? I'm 171 LSAT/3.6 GPA. I want to apply early decision to Chicago because I live there. But then again I want to live in DC after I graduate. Should I absorb the cost and go to Virginia or Duke instead of Chicago or with a school like UC will I be able to find a good job anywhere?

DC is a very elitist job market. A JD from UChicago will do well there, probably better than UVA or Duke all else being equal. Whether or not you get a "good job" (assuming "good job" means biglaw or competitive job in the public sector) out of any school is pretty much a coin toss due to the economy. Unless things really improve a lot, there are no guarantees anywhere.

No guarantees in this economic climate, but plenty of UofC students go to DC every year. Certain prestigious DC firms recruit at Chicago but not Duke or Virginia; in addition, there's no pre-screening at Chicago OCI (there is at Virginia and I assume at Duke), so you'll be able to interview with most every DC firm that comes to campus.